Legislations Governing Operation of Insurance Companies in India
The insurance industry of India has 57 insurance companies -24 are in the life insurance business, while 34 are non-life insurers. Among the life insurers, LIC is the sole public sector company. There are six public sector insurers in the non-life insurance segment. In addition to these, there is a sole national re-insurer namely General…
Read article Fundamental Principles Governing Insurance Products
Insurance is a legal agreement between an insurer (insurance company) and an insured (individual/legal entity), in which an insured receives financial protection from an insurer for the losses he may suffer under specific circumstances. In insurance policy, there are three important terms viz. Premium, Sum insured, Sum assured. Premium: The insured needs to pay a…
Read article Insurance penetration and density in India and across the globe
Insurance penetration and density are two metrics, that so often used to assess the level of development of the insurance sector in a country. These metrics are normally expressed in terms of US$. Insurance Penetration: Insurance penetration is measured as the percentage of insurance premiums to the GDP of the country. For instance, if a…
Read article Privatisation and Foreign Direct Investment (FDI) in Insurance Sector
Privatisation and foreign direct investment (FDI) have been seen by policymakers, in India and abroad as key components of India’s reform program. Indian Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49%. With the Union Cabinet approving…
Read article History and Development of Insurance business
Insurance denotes protection from financial loss in which, one party (an insurance company) in exchange for the amount of premiums it collects agrees to compensate another party in the event of a certain loss, damage, or injury. It is a form of risk management, primarily used to protect against the risk of a contingent or…
Annuity Plans to provide you a regular stream of pension
An annuity plan is an insurance contract between you (the annuitant) and an insurance company to provide you with a regular stream of 100% guaranteed pension for a lifetime after retirement. This helps you to secure your life goals and create a financial net for your family. The life insurance company invests your money and…
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